July 12 (Bloomberg) -- Deutsche Bank AG, the Frankfurt-based bank that’s courting wealthy clients, hired Caroline
Kitidis from Goldman Sachs Group Inc., according to two people
familiar with the matter.

Kitidis, 38, will work with wealth-management clients in
the U.S., said one of the people, who asked not to be identified
because the bank hasn’t announced her appointment. She’ll be
part of a push by continental Europe’s biggest bank to boost
profits from advising the rich and to catch up with UBS AG and
Credit Suisse Group AG.

Deutsche Bank Co-Chief Executive Officer Anshu Jain, facing
stricter capital requirements that make some investment banking
operations unprofitable, promoted Michele Faissola, one of his
investment-banking lieutenants, to run wealth and asset
management last year. Jain said in June he’s meeting with top
clients himself to help meet the goal.

Kitidis ran a team at Goldman Sachs that created
derivatives for private and institutional clients, according to
a biography on a Bentley University alumni page. The item says
she was in the class of 1997 at the school in Waltham,
Massachusetts. She joined New York-based Goldman Sachs in 1998,
according to Financial Industry Regulatory Authority records.
Kitidis was named a managing director in 2009.

Pholida Barclay, a spokeswoman for Deutsche Bank in New
York, declined to comment, as did Tiffany Galvin, a Goldman
Sachs spokeswoman.

Catching Up

“The big challenge is for Deutsche Bank to catch up in
terms of profitability in wealth management -- this is an area
that has been comparatively disappointing,” Antoine Burgard, an
analyst at Natixis SA in Paris who recommends investors buy the
shares, said in a telephone interview. “Whenever you see a
wealth manager move, they generally take clients with them.”

Last month, Deutsche Bank listed 10 recent hires it made to
its asset and wealth management group, including Raphael Zagury
as head of key client partners and wealth investment advisory
for Latin America. Zagury was previously in charge of creating
derivative investments for wealthy clients at Bank of America
Corp.’s Merrill Lynch unit.

The bank is trying to attract 50 percent more clients with
at least 30 million euros ($39 million) to invest by 2015.

UBS Leads

Deutsche Bank was the eighth-largest wealth manager
globally last year with $387.3 billion of managed assets,
Scorpio Partnership, a London-based research company, said in a
study published this week. UBS AG of Switzerland, the biggest
wealth manager, had assets of $1.7 trillion. Total wealth
management assets grew 8.7 percent in 2012 to $18.5 trillion.

Three years of net outflows at the asset and wealth
management unit were followed by 6 billion euros of inflows in
the first quarter, according to information published on
Deutsche Bank’s website.

Faissola is aiming to increase pretax profit at the unit to
1.7 billion euros in 2015 from 700 million euros last year. He
told reporters in Frankfurt last month that he’s become “more
confident” about reaching the division’s goals.

Asset and wealth management generated 221 million euros of
pretax profit in the first quarter, equivalent to 9.2 percent of
Deutsche Bank’s total pretax profit of 2.41 billion euros.